Tuesday, November 22, 2022
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Israeli tech ecosystem studies H1 2022

With 2022 half achieved, there’s plenty of new studies slicing and dicing funding knowledge for Israeli startups in H1 2022. Within the huge image, it’s evidently that the market goes by means of a difficult financial interval, however regardless of tech layoffs and a decline investments in Q2 2022 (as was seen within the US) the Israeli tech business faired nicely.

IVC/Leumi Tech Israel tech overview Q2 2022

A brand new report by IVC and Leumi Financial institution exhibits that within the first half of 2022, Israeli high-tech firms raised $9.8 billion in 395 offers. Whereas it’s a 30% decline in comparison with H1 2021 (which reached a document of $26.6 billion in complete for the 12 months), it’s extremely profitable in context.

Early stage (Pre-seed, Seed and Collection A) continued to carry out nicely within the first half of the 12 months. The median funding spherical elevated to $5.6 million, which maybe indicators buyers urge for food in the direction of seed/collection A, in comparison with giant development grounds, which have been down considerably. Mega offers of over $100M dropped by 70% in comparison with This autumn 2021.

In Q2 2022, $4.12 billion have been raised in 182 offers. The numbers for H1 are spectacular however nonetheless present clear indicators of a slowdown in particular elements of the Israeli tech economic system.

Israeli tech fundraising by quarter (Supply: IVC)
Israeli fundraising in H1 2022 – not practically pretty much as good as 2021, however higher than 2020

Viola Report – H1 2022 Abstract

Viola printed their very own H1-2022 Israel tech ecosystem report (you’ll be able to obtain it as a PDF right here).


  • Capital raised in H1-22 reached $9.4B, a 27% drop from H1-21, however nonetheless increased than H1-2020
  • Mega rounds ($>100M) dropped by 35%
  • Anticipate to see the impression within the early and development levels in H2
  • US buyers transferring in the direction of earlier rounds
  • Early-stage deal rely exercise is rising
  • Cyber safety retains its lead, whereas DevOps/knowledge infrastructure is on the rise

GameIS Israeli gaming report

As energetic members of GameIS, Israel’s Sport Builders Affiliation, and buyers in Israeli gaming, we (Remagine Ventures) have been delighted to assist the business report on the native gaming ecosystem. With right now’s information on the merger between Unity and Ironsource (valuing the latter at $4.4 billion), Israel is extremely nicely positioned to be a frontrunner in gaming tech and infrastructure.

The GameIS and Deloitte report exhibits that the gaming business in Israel is a flourishing market with a substantial amount of potential. Among the highlights:

  • ? Israeli gaming startups reached over $8.6 billion in income in 2021, 5% of world business revenues in 2021 ($175 billion)
  • ? Israel is residence to some 190 gaming firms with round 14,000 staff
  • ? Israel is a world chief within the informal gaming market, the efficiency advertising business and in superior monetization methods

Learn a abstract of the report on CTech by Calcalist or obtain the report.

What’s subsequent for Israeli tech?

The writing was on the wall for this market correction, as I identified in my put up from January 2022: (2021 was a document 12 months for Israeli tech – what now?). Corporations that handle to outlive this era may reap the advantages in an energetic M&A market, startups may have the ability to afford to draw high expertise once more and VCs should regulate to accountable development primarily based on unit economics vs. in any respect value. Total, I’m very optimistic about the way forward for Israeli tech.

Eze is managing associate of Remagine Ventures, a seed fund investing in formidable founders on the intersection of tech, leisure, gaming and commerce with a highlight on Israel.

I am a former normal associate at google ventures, head of Google for Entrepreneurs in Europe and founding head of Campus London, Google’s first bodily hub for startups.

I am additionally the founding father of Techbikers, a non-profit bringing collectively the startup ecosystem on biking challenges in assist of Room to Learn. Since inception in 2012 we have constructed 11 faculties and 50 libraries within the growing world.

Eze Vidra
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